Integrity Financial Groups, LLC Explains What You Need to Know About Bank Loans & Bank Financing

Bank Loans

​Dallin Hawkins, Director of Sales & Operations - Integrity Financial Groups, LLC.​

What You Need to Know About Bank Loans & Bank Financing

Integrity Financial Groups is a leader in the equipment finance industry. We have funding relationships that give our customers the blend of options and financial terms needed for the most efficient use of precious capital, allowing their businesses to excel and grow. Contact Integrity Financial Groups LLC today to discover how our innovative financing structures can meet your specific needs.

Dallin Hawkins, Director of Sales & Operations

Getting a business started or growing your existing business requires capital. When planning for high-cost purchases such as heavy equipment or vehicles such as commercial trucks or semi-trucks, financing becomes a critical component of the investment. There are several options available to businesses making large capital expenditures:

Paying with cash – this ties up your capital and makes you unnecessarily vulnerable to other demands for capital or business slowdowns which may result in a drain on your available funding. Besides, if you have more cash than you need, you would probably not be reading this article related to bank loans.

Bank loans – consulting with your local bank or banking conglomerate for a low-cost loan.

Dealer financing – arrange financing through the company you’re purchasing the truck or equipment from. This can sometimes be to your advantage if the timing and terms are right. One drawback to dealer financing is that terms are not often flexible and length of the loans available may increase the cost of the financing over the long haul

Third-party financing – this is often a good approach for making capital purchases whether you’re purchasing heavy equipment, used trucks, acquiring semi-trucks, or growing a fleet of vehicles. Financing companies have a broader variety of financing options available and offer increased flexibility in terms, still with attractive rates. The result can mean more available capital and improved cash flow for growing the business in other areas.

What About Those Bank Loans?

There are a number of truths to be considered about bank loans:

  • They’re in business to make a profit. Sure, all businesses are trying to make a profit, but banks focus on rate of return and are looking very closely at credit worthiness, longevity of the business (financing a start-up operation through a bank can be a major challenge), and collateral.
     
  • Banks are not personally tied to your business. Most banks today are tied to larger banks that are managed by even larger banks. Personalized service and attention to your particular circumstances are largely of no consequence when considering your loan requests. In fact, qualifying for small business loans can be an exasperating experience with many banks. In fact, over 70% of requests for small business loans are rejected.
     
  • Bank loans take time. Your business may need new or used trucks in a short period of time, and a bank loan application, consideration, and approval can take 30-60 days, or even longer.
     
  • Banks are looking for high-return and low-risk prospects. Their focus is on the businesses with stellar credit ratings that have been in business long enough to provide a solid financial track record, have more than adequate collateral, and are borrowing a considerable amount of money (meaning profit for the bank).

What Are the Alternatives to Bank Financing?

Integrity Financial Groups is a leader in the equipment finance industry. We have funding relationships that give our customers the blend of options and financial terms needed for the most efficient use of precious capital, allowing their businesses to excel and grow. Contact Integrity Financial Groups LLC today to discover how our innovative financing structures can meet your specific needs.

Source: Integrity Financial Groups, LLC

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